Page 351 - CA Inter Audit PARAM

CA Ravi Taori

forms of standardized documentation, and industry or subject matter-specific guidance materials. Explain
the matters to be addressed in this context.
Answer The firm should establish policies and procedures designed to provide it with reasonable assurance
that engagements are performed in accordance with professional standards and regulatory and legal
requirements, and that the firm or the engagement partner issues reports that are appropriate in
the circumstances.

Through its policies and procedures, the firm seeks to establish consistency in the quality of
engagement performance. This is often accomplished through written or electronic manuals,
software tools or other forms of standardized documentation, and industry or subject matter-
specific guidance materials.

Matters addressed include the following:
• How engagement teams are briefed on the engagement to obtain an understanding of the
objectives of their work.
• Processes of engagement supervision, staff training and coaching.
• Methods of reviewing the work performed, the significant judgments made and the form of
report being issued.
• Appropriate documentation of the work performed and of the timing and extent of the
review.
• Processes to keep all policies and procedures current.

QNO-- Responsibility of Engagement Partner For EQCR New Course – (M24E)
220.07.50 Bhaskar CNO – SA220.020
CA M is the engagement partner of the firm M/s Y2Z LLP and he is auditing the financial statements of a
listed entity ABC Ltd. The audit firm has determined that an engagement quality control review is

required for this assignment. Discuss the responsibilities of CA M as an engagement partner for
engagement quality control review as per SA-220.
Answer Engagement Performance: As per SA 220, for audits of financial statements of listed entities, and those
other audit engagements, if any, for which the firm has determined that an engagement quality control
review is required, the engagement partner shall:
(i) Determine that an engagement quality control reviewer has been appointed.

(ii) Discuss significant matters arising during the audit engagement, including those identified during
the engagement quality control review, with the engagement quality control reviewer.

(iii) Not date the auditor’s report until the completion of the engagement quality control review.

(iv) If differences of opinion arise within the engagement team, with those consulted or, where
applicable, between the engagement partner and the engagement quality control reviewer, the
engagement team shall follow the firm’s policies and procedures for dealing with and resolving
differences of opinion.

Monitoring Compliance with quality control policies Old Course -- (N19R/N20R/N22M)
QNO and procedures – Purpose
220.08
Bhaskar CNO SA220.180
The firm should establish policies and procedures designed to provide it with reasonable assurance that
the policies and procedures relating to the system of quality control are relevant, adequate, operating
effectively and complied with in practice. Such policies and procedures should include an ongoing

consideration and evaluation of the firm’s system of quality control, including a periodic inspection of a
selection of completed engagements. Explain in the above context the purpose of monitoring compliance
with quality control policies and procedures.
Answer ➢ The firm should establish policies and procedures designed to provide it with reasonable assurance
that the policies and procedures relating to the system of quality control are relevant, adequate,
operating effectively and complied with in practice.
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